NEW YORK CITY—Amid continuing volatility in Europe and, more recently, the stock market, commercial real estate is reaping the benefits of America's stature as a safe haven, Marcus & Millichap's Hessam Nadji said last week. Appearing on Bloomberg's Street Smart program on Oct. 1, the GlobeSt.com Thought Leader said continuing job growth is “translating into more demand for the underlying asset,” while the backdrop of 10-year Treasuries in the 2.5% range boosts demand for hard assets of all types, including commercial real estate.
“Every occupancy level for various types of CRE is experiencing better and better quarters,” said Nadji, chief strategy officer at MMI. “So our outlook for CRE in general is very positive, despite the increased volatility we're seeing in the stock market.”
Amid a discussion of whether employment growth is being matched by growth in wages and quality of jobs, Nadji said the current pace of job creation is buoying all CRE sectors while not overheating the economy and exerting inflationary pressure. “In a way, it's just the right balance.”
Nadji also discussed the long-term outlook for the rate of job growth and how this will affect the Federal Reserve's eventual moves to increase interest rates. He also described the confidence reflected in MMI's recent investor sentiment survey in the face of a disappointing monthly Case-Shiller home pricing report.
For the full video, click here. For all coverage of Marcus & Millichap on GlobeSt.com, including columns and insights from Hessam Nadji, click here.
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